Skipton ups rate on two-year fixed-rate Isa

Isa and coins

Skipton Building Society has upped the rate on its two-year fixed-rate Isa to 1.9% annually, from 1.85%.

The minimum opening balance is £500, but deposits of up to the 2014/15 tax year personal allowance of £5,940 can be made.

From 1 July, when the account will automatically become a 'New Isa', or Nisa, the limit will increase to £15,000.

Transfers in from other Isas are allowed and savers will be able to close the account and withdraw the full amount during the two-year term but a penalty of 180 days' loss of interest applies. Partial withdrawals and transfers out are not permitted.

While any improvement in rate is good news for savers, this two-year fixed Isa is still some way behind the accounts sitting at the top of the best buy tables. TSB's version is paying 2.1%, while Halifax, Nationwide and Cheshire's pay 2.05% and all four accept transfers in.

Meanwhile, Skipton also confirmed it would hold the interest paid on its market-leading five-year fixed-rate Isa at 3%.

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